Economy

US economy rebounds from slump by adding 261,000 jobs

Figure lower than expected in October but unemployment ticks down to 4.1%

The release of October’s figures comes a day after Donald Trump announced a new tax plan.

Fri Nov 3 2017 - 14:54

The US economy bounced back in October from a dramatic slump in hiring in the wake of two devastating hurricanes, the labour department announced on Friday.

The US added 261,000 new jobs and the unemployment rate ticked down to 4.1 per cent.

In September, the US shed 30,000 jobs - the first loss in seven years - as hurricanes Harvey and Irma held back hiring in Texas and Florida. The leisure and hospitality industry was hardest hit by the hurricanes in September, shedding 111,000 jobs.

October’s figure was still lower than analysts had expected, perhaps reflecting the continued impact of the storms.

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September was the second month of disappointing growth in the US jobs market. In August the economy added 169,000 new positions, below the 180,000 that had been expected by economists.

But at 4.1 per cent the unemployment rate is now at lows unseen since December 2000.

The release of October's figures comes a day after Donald Trump announced a new tax plan that he has pledged will create more jobs in the US.

The plan, which will deliver big cuts for business and the wealthy as well as more modest cuts for the middle class, will provide “the rocket fuel our economy needs to soar higher than ever before,” Trump said.

On Wednesday, ADP, the private payroll supplier, said the private sector added 235,000 in October.

Mark Zandi, chief economist of Moody’s Analytics, which helps compile the report, said: “The job market rebounded strongly from the hit it took from Hurricanes Harvey and Irma.

“Resurgence in construction jobs shows the rebuilding is already in full swing. Looking through the hurricane-created volatility, job growth is robust.”

- Guardian

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